Question 3: Inventory Management using EOO A firm uses 800 units of a product per year on a continuous basis. The product has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. a) Calculate the EOQ b) Calculate the total inventory cost. c) Explain the trade-off relationship between carrying costs and ordering costs when the order size decreases. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold a inventory of 10 days as the safety stock. d) Determine the average level of inventory. e) Determine the re-order point. f) Discuss the effects of having safety stocks on the average age of inventory and the overall profitability of the firm. Calculations are not required